Rhode Island minimum wage in 2026 (and 2027)

The 2027 raise is already law

Rhode Island employers already know the 2027 figure: $16.00 in 2026, $17.00 from January 1, 2027, per DLT. No increase beyond 2027 had been set when we checked in October 2026.

For comparison, neighboring Massachusetts is at $15.00 with no 2027 increase announced and Connecticut goes from $16.94 to $17.48 in 2027. A Providence business is $1.00 above Massachusetts now and will be $2.00 above it next year unless Massachusetts acts.

Tipped staff and Sunday premiums

Rhode Island allows a large tip credit. The cash wage for tipped workers is $3.89 an hour, with up to $12.11 an hour of tips counted toward the $16.00 minimum, per the DOL tipped wage table. That is more than Massachusetts ($8.25) or Connecticut's restaurant rate ($10.56) allow. When tips fall short, the employer tops up the pay. We did not find a published 2027 tipped cash wage on the pages we read, so confirm it with DLT before January.

Two other rules matter for retailers. Overtime is due at 1.5 times the regular rate after 40 hours a week. Separately, Rhode Island requires time-and-a-half for Sunday and holiday work in retail and certain other businesses under two laws outside the minimum wage act, the DOL state summary notes. Price that into weekend schedules.

$16.00 and $17.00 converted to weekly, monthly and yearly pay

Full time is 40 hours x 52 weeks = 2,080 hours.

Employer cost of a minimum wage hire in Rhode Island

For a new Rhode Island employer with one full-time worker at $16.00 ($33,280.00 a year):

• FICA, employer 7.65%: $2,545.92
• FUTA, 0.6% on $7,000: $42.00
• State unemployment, new employer 1.21% (including the 0.21% Job Development Assessment) on the $30,800 wage base: $372.68

Total $2,960.60 on top, $36,240.60 all in. At $17.00 in 2027, FICA rises to $2,705.04; if the 2026 unemployment rate and wage base still applied, unemployment and FUTA would stay at $372.68 and $42.00, for an all-in figure of $38,479.72. DLT had not published 2027 unemployment rates when we checked. Rhode Island's Temporary Disability Insurance, 1.1% on the first $100,000 in 2026, is withheld from the employee, not paid by you, but your payroll has to collect it. The full state setup is on Rhode Island payroll taxes, and state unemployment rates lists how the 1.21% compares.

Setting up payroll for the January 2027 change

Update every hourly rate below $17.00 before the first pay period that includes January 1, 2027. Payroll software can hold the new rate in advance so the change happens on time. Gusto's Simple plan costs $49 a month plus $6 per person (checked October 16, 2026), and you can cancel any month, though a cancellation after the 5th is billed for the full month. Compare prices across providers in payroll service cost and best payroll software.

See every state's floor in the 2026 state minimum wage table.